Introduction: At present, the speculative demand in Beijing’s property market has disappeared, and investment demand accounts for a small proportion, while rigid demand has become the mainstream. The real effect of stabilizing Beijing’s housing prices is considered to be the adjustment of the supply side. According to data from the National Bureau of Statistics, in January this year, the price of new houses in Beijing increased by 2.9% year-on-year, and the price of second-hand houses rose by 6.9% year-on-year, making it the city with the lowest year-on-year increase in housing prices among the four first-tier cities. In other words, in the past year, Beijing has been the first-tier city with the best housing prices, even better than many hot second-tier cities.
Following the Central Economic Work Conference at the end of last year, this year’s government work report once again proposed to “solve the prominent housing problems in big cities.”
Beijing is the most benchmarking “big city”. On the one hand, the marketization process of Beijing’s property market started earlier, the market volume is large, and the radiation capacity is strong, which has direct or indirect impacts on the markets around Beijing, the Bohai Sea, and even the northern region; on the other hand, it acts as a supervisory center. Where it is located, Beijing’s property market control policies have always had a strong vane significance. In recent years, Beijing has been implementing the country’s most stringent purchase restrictions and loan restrictions. The strong deleveraging measures have not only effectively restricted investment and speculative demand, but also made Beijing’s property market regulation the “most stringent regulation”.
On the supply side, a large number of restricted-competition houses are put into the market, which is considered to be a key factor in stabilizing housing prices. In addition, the rapid response of the supervisory authority to market changes ensures that the policy is timely and effective.
This series of measures together constitute the password for the “stability maintenance” of the Beijing property market. After a long period of sideways, Beijing’s housing prices have recently seen an upward trend, but the solid market foundation and the diversified control measures still give most practitioners confidence. Speculative demand in the property market has disappeared in Beijing From the demand side, Beijing is still the most severely regulated city. Among them, the existing property market policy framework is mainly derived from several important policy measures in the past few years Spark Global Limited.
On April 30, 2010, Beijing introduced a purchase restriction policy to limit the purchase of new commercial houses to one set per family, and at the same time set the purchase restriction threshold to five consecutive years of tax payment or social guarantee. Beijing has also become the first city in the country to issue a “purchase restriction order.”
In 2015, Tongzhou District, as the “Sub-center of Beijing City”, further upgraded its purchase restriction policy on the basis of existing policies. The purchase restriction threshold is set to settle in Tongzhou District for three years, or have three consecutive years of tax payment or social guarantee certificate in Tongzhou District. As a result, Tongzhou District is known as the “most difficult area to obtain qualifications for buying a house”.
In March 2017, Beijing successively introduced the “317 New Deal” and the “326 New Deal”. Raise the minimum down payment ratio for the first home to 35%, raise the minimum down payment ratio for the second home to 60%, and suspend the issuance of personal housing loans for more than 25 years. At the same time, Beijing has also included commercial and residential housing in the scope of purchase restrictions and implemented a loan suspension.
So far, the threshold faced by home buyers in Beijing is still the highest in cities across the country.
This series of deleveraging policy measures has greatly changed the demand structure of Beijing’s property market. Many real estate companies and brokerage agencies told the 21st Century Business Herald that the current speculative demand in the Beijing property market has disappeared, and investment demand accounts for a small proportion, while rigid demand has become the mainstream. Among them, the demand for improvement has become the mainstay of rigid demand, and the demand for the first set of homes also occupies a certain proportion.